16Payments to and by Commonwealth in respect of benefits payable under Public Sector Superannuation Scheme

#### 16 Payments to and by Commonwealth in respect of benefits payable under Public Sector Superannuation Scheme (1) Subject to subsection (2), where benefits (other than a preserved benefit or a post‑retirement commutation benefit) become payable under the Rules to, or in respect of, a person who has ceased to be a member: (a) CSC must pay to the Commonwealth out of the PSS Fund an amount equal to the person’s accumulated funded contributions; and (b) the Commonwealth must pay the benefits to such person or persons as are appropriate under the Rules. (2) Where the only benefit that is payable under the Rules to, or in respect of, a person who has ceased to be a member is a lump sum benefit that does not exceed the person’s accumulated funded contributions, subsection (1) does not apply in relation to the member. (3) Where partial invalidity pension is payable to a person who is a member: (a) the Commonwealth must pay to the person an amount equal to each instalment of partial invalidity pension payable under the Rules to the person; and (b) if, immediately before partial invalidity pension became payable to the person, the person was an invalidity pensioner—the Commonwealth must also pay to CSC: (i) where, on the person’s becoming an invalidity pensioner, a pension only became payable to him or her—an amount equal to the person’s accumulated funded contributions at the time when he or she became an invalidity pensioner; or (ii) where, on the person’s becoming an invalidity pensioner, the person was entitled to receive a lump sum benefit and a pension—an amount equal to the difference between: (A) the person’s accumulated funded contributions at the time when he or she became an invalidity pensioner; and (B) the amount of the lump sum benefit. (4) Subject to subsection (5), where a preserved benefit applicable to a person is payable under the Rules: (a) CSC must pay to the Commonwealth an amount equal to the balance of the person’s accumulated funded contributions remaining in the PSS Fund; and (b) the Commonwealth must pay the preserved benefit to such person or persons as are appropriate under the Rules. (5) Where the preserved benefit payable to or in respect of a person under the Rules consists only of a lump sum benefit that does not exceed the balance of the person’s accumulated funded contributions remaining in the PSS Fund, subsection (4) does not apply in relation to the person. (6) CSC must pay into the PSS Fund any amount paid to it under subsection (3). (7) If a post‑retirement commutation benefit becomes payable under the Rules to, or in respect of, a person who has ceased to be a member, the Commonwealth is liable to pay the benefit. (8) If: (a) a person becomes entitled to a post‑retirement commutation benefit under the Rules; and (b) the person has, under the Rules, requested that the amount of the benefit be: (i) paid to the Commissioner of Taxation; and (ii) wholly applied in payment of surcharge under an assessment; the liability to pay that benefit must be discharged by: (c) paying the amount of that benefit to the Commissioner of Taxation in accordance with the person’s request; and (d) informing the Commissioner of Taxation of the person’s request that the amount be wholly applied in payment of surcharge under the assessment concerned. (8A) For the purpose of this Act and the Rules, a lump sum paid by CSC in relation to a release authority issued to a person under item 3 of the table in subsection 135‑10(1) in Schedule 1 to the Taxation Administration Act 1953 is a benefit paid in respect of the person. > Note: The purpose of the release authority is to allow a lump sum to be paid to the Commissioner to meet a debt the person has under Subdivision 133‑C in Schedule 1 to the Taxation Administration Act 1953. (9) In this section: > assessment has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997. > post‑retirement commutation benefit means a lump sum benefit payable by way of the commutation of the whole or a part of a pension, where the amount of the benefit is to be wholly applied in payment of surcharge. > surcharge has the same meaning as in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.